Thermo Fisher Deal to Buy Gatan From Roper Investigated by CMA
December 19 2018 - 3:12AM
Dow Jones News
By Oliver Griffin
The U.K.'s monopoly watchdog, the Competition and Markets
Authority, said Wednesday that it is investigating Thermo Fisher
Scientific Inc.'s (TMO) $925 million acquisition of Roper
Technologies Inc.'s (ROP) Gatan business.
The CMA said it is worried the deal, which was first announced
in June, will adversely affect Thermo Fisher's two rivals in the
sector, who use Gatan peripherals with their electron
microscopes.
Alternatives to peripherals made by Gatan are at best extremely
limited, the CMA said.
As a result, the competition regulator said it is concerned the
deal could weaken Thermo Fisher's competitors and enhance its
already strong market position, which could potentially lead to
higher prices for customers.
The CMA said its investigation also raised concerns that the
merger will leave Thermo Fisher with insufficient competition in
the market for direct detection cameras, as Gatan is currently one
of only two competitors in the supply of these instruments.
This in turn could reduce the incentive for further product
development, the CMA said.
The CMA said that if the merging businesses can't address these
concerns, the deal will be referred for an in-depth phase two
investigation.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
December 19, 2018 02:57 ET (07:57 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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